Cash Hoards Crushing CP Market

Senior Editor

The $2 trillion mountain of cash that U.S. companies are sitting on is helping to create a massive disconnect between supply and demand within the commercial paper market.

As this story by the WSJ’s Anusha Shrivastava points out, investors are looking for more commercial paper, but the blue-chip companies that previously issued big in the market, like Coca-Cola, have fled, opting to fill up their coffers with longer term debt.

Nearly across the board, mid-market executives are hiring new employees, buying new technology solutions, acquiring businesses to reach new markets and preparing IPOs, according to a Deloitte survey of more than 500 mid-market executives. But companies are running up against a number of constraints as they seek to expand, particularly in acquiring and retaining skilled talent.